ProPetro Holding Corp (PUMP)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 120,810 157,004 123,475 30,660 8,992 -33,843 -53,083 -24,872 -67,822 -101,444 -132,005 -151,545 -132,115 -45,657 39,593 119,613 220,645 259,468 272,339 277,282
Long-term debt US$ in thousands 45,000 45,000 60,000 30,000 30,000 0 0 0 0 110,000 130,000 130,000 150,000 160,000
Total stockholders’ equity US$ in thousands 998,392 1,027,330 1,008,360 982,923 954,033 830,538 817,036 847,212 826,302 842,815 844,743 847,269 870,771 911,767 938,429 961,516 969,305 944,100 909,037 869,541
Return on total capital 11.58% 14.64% 11.56% 3.03% 0.91% -4.07% -6.50% -2.94% -8.21% -12.04% -15.63% -17.89% -15.17% -5.01% 4.22% 11.16% 20.07% 24.16% 25.72% 26.93%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $120,810K ÷ ($45,000K + $998,392K)
= 11.58%

ProPetro Holding Corp's return on total capital has exhibited fluctuations over the past few years. Generally, the company's return on total capital has been positive, indicating that it has been able to generate profits from the capital invested in its operations.

The return on total capital was relatively low in the first quarter of 2020 at 3.03%, possibly due to economic challenges or specific company circumstances during that period. Subsequently, there was a significant decline in the return on total capital in the second quarter of 2020 and remained negative until the first quarter of 2021. This period of negative returns may suggest challenges or inefficiencies in capital allocation and operational performance.

From the second quarter of 2021 onwards, there was a notable improvement in the return on total capital, with positive figures exceeding 10% in some quarters. This improvement may indicate enhanced operational efficiency, better utilization of capital, or strategic decisions that positively impacted the company's financial performance.

Overall, ProPetro Holding Corp's return on total capital shows variability, with periods of both positive and negative returns. It would be essential for stakeholders to monitor the trend of this ratio over time to assess the company's ability to generate returns from its total capital effectively.


Peer comparison

Dec 31, 2023